ATHENS, GREECE, May 16, 2024 - IMPERIAL PETROLEUM INC. (NASDAQ: IMPP, the “Company”), a ship-owning company providing petroleum products, crude oil and dry bulk seaborne transportation services, announced today its unaudited financial and operating results for the three months ended March 31, 2024.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

 

  • Fleet operational utilization of 80.6% in Q1 24’ an improved performance compared to Q4 23’ mainly due to a 29.3% (65 days) decrease in commercial idle days. In Q1 23’our operational utilization was 85.0%.
  • 0% of fleet calendar days, equivalent to 671 days, in Q1 24’ were dedicated to spot activity.
  • Revenues of $41.2 million in Q1 24’ compared to $29.9 million in Q4 23’ equivalent to a 37.8% rise- and $65.4 million of revenues in Q1 23’.
  • Net Income of $16.7 million in Q1 24’ compared to net income of $6.5 million in Q4 23’ equivalent to a 157% increase- and net income of $35.7 million in Q1 23’.
  • Cash and cash equivalents and time deposits of $67.0 million as of March 31, 2024.
  • On April 17, 2024, we agreed to sell our 2009 built aframax tanker Gstaad Grace II for $42 million. The vessel was delivered to its new owners on April 26, 2024.

 

 

First Quarter 2024 Results:

  • Revenues for the three months ended March 31, 2024 amounted to $41.2 million, a decrease of $24.2 million, or 37%, compared to revenues of $65.4 million for the three months ended March 31, 2023, primarily due to an average year on year decline in tanker market spot rates by 38%. It is noted that during the period ended March 31, 2023 tanker market rates were at peak levels mainly due to the sharp effect of the Russian Ukraine conflict on tanker rates which normalized in the following quarters.
  • Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2024 were $13.5 million and $6.0 million, respectively, compared to $16.9 million and $6.9 million, respectively, for the three months ended March 31, 2023. The $3.4 million decrease in voyage expenses is mainly due to longer haul spot voyages resulting in decreased port expenses by $1.4 million (33.7%) and due to decreased transit through the Suez canal compared to the same period of last year and decreased commissions by $2.2 million due to lower revenues. The $0.9 million decrease in operating expenses is due to the slight decrease in the average number of our vessels.
  • Drydocking costs for the three months ended March 31, 2024 and 2023 were $0.6 million and $0.6 million, respectively. During the three months ended March 31, 2024 our aframax tanker commenced its drydocking which was concluded within April 2024, while during the three months ended March 31, 2023 one of our handysize drybulk carriers underwent its drydocking.
  • General and administrative costs for the three months ended March 31, 2024 and 2023 were $1.2 million and $1.0 million, respectively. This change is mainly attributed to the increase in stock-based compensation costs, partly offset by a reduction in reporting expenses due to the spin-off of C3is Inc. which was completed in June 2023.
  • Depreciation for the three months ended March 31, 2024 and 2023 was $4.0 million and $4.1 million, respectively. The change is attributable to the slight decrease in the average number of our vessels.
  • Interest and finance costs for the three months ended March 31, 2024 and 2023 were $0.002 million and $1.4 million, respectively, as there was no debt outstanding during the three months ended March 31, 2024.
  • Interest income for the three months ended March 31, 2024 and 2023 was $1.8 million and $1.3 million, respectively. The increase is mainly attributed to the $0.8 million of accrued interest income – related party for the three months ended March 31, 2024 in connection with the $38.7 million of the sale price of the Aframax tanker Afrapearl II (ex. Stealth Berana) which is receivable by July 2024.
  • As a result of the above, for the three months ended March 31, 2024, the Company reported net income of $16.7 million, compared to net income of $35.7 million for the three months ended March 31, 2023. The weighted average number of shares of common stock outstanding, basic, for the three months ended March 31, 2024 was 27.6 million compared to 15.1 million shares for the three months ended March 31, 2023. Earnings per share, basic, for the three months ended March 31, 2024, amounted to $0.56, compared to earnings per share, basic, of $2.31 for the three months ended March 31, 2023.
  • Adjusted net income was $17.5 million corresponding to an Adjusted EPS, basic, of $0.59 for the three months ended March 31, 2024 compared to an Adjusted net income of $36.0 million corresponding to an Adjusted EPS, basic, of $2.33 for the same period of last year.
  • EBITDA for the three months ended March 31, 2024 amounted to $18.9 million, while Adjusted EBITDA for the three months ended March 31, 2024 amounted to $19.8 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 9.84 vessels were owned by the Company during the three months ended March 31, 2024 compared to 10.10 vessels for the same period of 2023.

Fleet Employment Table

As of May 16, 2024, the profile and deployment of our fleet is the following:

 

 

                                                         

Name

  

Year
Built

 

  

Country
Built

 

  

Vessel Size
(dwt)

 

  

Vessel
Type

 

  

Employment
Status

 

  

Daily Charter
Rate

 

  

Expiration of
Charter(1)

 

Tankers

  

     

  

     

  

     

  

     

  

     

  

     

  

     

Magic Wand

  

 

2008

 

  

 

Korea

 

  

 

47,000

 

  

 

MR product tanker

 

  

 

Spot

                 

Clean Thrasher

  

 

2008

 

  

 

Korea

 

  

 

47,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Clean Sanctuary (ex. Falcon Maryam)

  

 

2009

 

  

 

Korea

 

  

 

46,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Clean Nirvana

  

 

2008

 

  

 

Korea

 

  

 

50,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Clean Justice

  

 

2011

 

  

 

Japan

 

  

 

46,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Aquadisiac

   

2008

     

Korea

     

51,000

     

MR product tanker

     

Spot

                 

Suez Enchanted

  

 

2007

 

  

 

Korea

 

  

 

160,000

 

  

 

Suezmax tanker

 

  

 

Spot

 

  

     

  

     

Suez Protopia

  

 

2008

 

  

 

Korea

 

  

 

160,000

 

  

 

Suezmax tanker

 

  

 

Spot

 

  

     

  

     

Drybulk Carriers

  

     

  

     

  

     

  

     

  

     

  

     

  

     

Eco Wildfire

  

 

2013

 

  

 

Japan

 

  

 

33,000

 

  

 

Handysize drybulk

 

  

 

Time Charter

 

  

 

$18,200

 

  

 

June 2024

 

Glorieuse

  

 

2012

 

  

 

Japan

 

  

 

38,000

 

  

 

Handysize drybulk

 

  

 

Time Charter

 

  

 

$13,000

 

  

 

May 2024

 

Fleet Total

  

     

  

     

  

 

678,000 dwt

 

  

     

  

     

  

     

  

     

 

(1)

Earliest date charters could expire.

 

 

 

 

CEO Harry Vafias Commented

Year 2024 commenced quite favorably for Imperial Petroleum; $16.7 million of net income for the first quarter of this year, which is almost 160% higher than our profitability in the last quarter of 2023, fills us with optimism. The market continues to be governed by turbulence which directs longer haul voyages and is sustaining charter rates at firm levels. The financial health of Imperial Petroleum is undisputable with large cash pile and no bank debt; Going forward we will remain focused on the growth of our Company.

 

Conference Call details:

 

 

On May 16, 2024 at 09:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

 

Online Registration:

 

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

https://register.vevent.com/register/BI52fe1de4b58b412dada1845a63e07141

 

 

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the IMPERIAL PETROLEUM INC. website (www.ImperialPetro.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About IMPERIAL PETROLEUM INC.

 

IMPERIAL PETROLEUM INC. is a ship-owning company providing petroleum products, crude oil and drybulk seaborne transportation services. The Company owns a total of ten vessels - six M.R. product tankers, two suezmax tankers and two handysize dry bulk carriers - with a total capacity of 678,000 deadweight tons (dwt). IMPERIAL PETROLEUM INC.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP,” respectively.

                 

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in any financing arrangements, performance of counterparty to our vessel sale agreement, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, the conflict on Israel and Gaza, the potential disruption of shipping routes due to ongoing attacks by Houthis in the Red Sea and Gulf of Aden or accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

 

 

Fleet List and Fleet Deployment                                          

For information on our fleet and further information:

Visit our website at www.ImperialPetro.com

 

Company Contact:

Fenia Sakellaris

IMPERIAL PETROLEUM INC.
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

 

Fleet Data:

The following key indicators highlight the Company’s operating performance during the three month periods ended March 31, 2023 and March 31, 2024.

 FLEET DATA

Q1 2023

Q1 2024

Average number of vessels (1)

10.10

9.84

Period end number of owned vessels in fleet

12

11

Total calendar days for fleet (2)

909

895

Total voyage days for fleet (3)

903

878

Fleet utilization (4)

99.3%

98.1%

Total charter days for fleet (5)

408

207

Total spot market days for fleet (6)

495

671

Fleet operational utilization (7)

85.0%

80.6%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

 

 

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income before share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation and share based compensation.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

(Expressed in United States Dollars,
except number of shares)

Three Months Period Ended March 31,

 

2023

2024

Net Income – Adjusted Net Income

   

Net income

35,724,102

16,654,604

Plus share based compensation

301,541

858,810

Adjusted Net Income

36,025,643

17,513,414

     

Net income - EBITDA

   

Net income

35,724,102

16,654,604

Plus interest and finance costs

1,351,603

2,430

Less interest income

(1,279,216)

(1,785,878)

Plus depreciation

4,088,852

4,027,061

EBITDA

39,885,341

18,898,217

     

Net income - Adjusted  EBITDA

 

 

Net income

35,724,102

16,654,604

Plus share based compensation

301,541

858,810

Plus interest and finance costs

1,351,603

2,430

Less interest income

(1,279,216)

(1,785,878)

Plus depreciation

4,088,852

4,027,061

Adjusted EBITDA

40,186,882

19,757,027

     

EPS

   

Numerator

 

 

Net income

35,724,102

16,654,604

Less: Cumulative dividends on preferred shares

(435,246)

(435,246)

Less: Undistributed earnings allocated to non-vested shares

(463,737)

(856,950)

Net income attributable to common shareholders, basic

34,825,119

15,362,408

Denominator

   

Weighted average number of shares, basic

15,054,406

27,613,661

EPS – Basic

2.31

0.56

 

 

 

Adjusted EPS

 

 

Numerator

 

 

Adjusted net income

36,025,643

17,513,414

Less: Cumulative dividends on preferred shares

(435,246)

(435,246)

Less: Undistributed earnings allocated to non-vested shares

(467,700)

(902,326)

Adjusted net income attributable to common shareholders, basic

35,122,697

16,175,842

Denominator

   

Weighted average number of shares, basic

15,054,406

27,613,661

Adjusted EPS

2.33

0.59

Imperial Petroleum Inc.

Unaudited Consolidated Statements of Income

(Expressed in United States Dollars, except for number of shares)

         

 

For The Three Months Ended March 31,

           

2023

 

2024

         

 

Revenues

             
 

Revenues

     

65,421,101

 

41,203,281

                 

Expenses

             
 

Voyage expenses

     

16,077,827

 

12,963,607

 

Voyage expenses - related party

   

810,530

 

514,414

 

Vessels' operating expenses

   

6,875,876

 

5,951,561

 

Vessels' operating expenses - related party

 

65,000

 

82,000

 

Drydocking costs

     

621,376

 

625,457

 

Management fees - related party

     

397,760

 

393,800

 

General and administrative expenses

   

978,969

 

1,207,168

 

Depreciation

     

4,088,852

 

4,027,061

Total expenses

   

 

29,916,190

 

25,765,068

 

       

 

 

 

 

Income from operations

   

 

35,504,911

 

15,438,213

                 

Other (expenses)/income

           
 

Interest and finance costs

   

(1,351,603)

 

(2,430)

 

Interest income

     

1,279,216

 

1,035,261

 

Interest income - related party

     

-

 

750,617

 

Dividend income from related party

   

-

 

189,583

 

Foreign exchange gain/(loss)

     

291,578

 

(756,640)

Other income, net

   

 

219,191

 

1,216,391

                 

Net Income

   

 

35,724,102

 

16,654,604

           

 

 

 

Earnings per share

     

 

 

 

- Basic

       

2.31

 

0.56

- Diluted

       

2.31

 

0.50

Weighted average number of shares

         

-Basic

       

15,054,406

 

27,613,661

-Diluted

       

15,054,406

 

30,951,012

 


Imperial Petroleum Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

         

December 31,

 

March 31,

         

2023

 

2024

               

Assets

           

Current assets

         
 

Cash and cash equivalents

 

91,927,512

 

35,331,381

 

Time deposits

   

32,099,810

 

31,628,000

 

Receivable from related parties

 

37,906,821

 

38,786,553

 

Trade and other receivables

 

13,498,813

 

16,747,942

 

Other current assets

   

302,773

 

834,802

 

Inventories

   

7,291,123

 

7,865,379

 

Advances and prepayments

 

161,937

 

207,473

Total current assets

   

183,188,789

 

131,401,530

               

Non current assets

         
 

Operating lease right-of-use assets

 

-

 

132,448

 

Vessels, net

   

180,847,252

 

248,873,394

 

Investment in related party

 

12,798,500

 

12,796,416

Total non current assets

   

193,645,752

 

261,802,258

Total assets

     

376,834,541

 

393,203,788

               

Liabilities and Stockholders' Equity

       

Current liabilities

         
 

Trade accounts payable

 

8,277,118

 

6,681,701

 

Payable to related parties

 

2,324,334

 

5,256,860

 

Accrued liabilities

   

3,008,500

 

4,203,686

 

Operating lease liabilities, current portion

   

-

 

72,704

 

Deferred income

   

919,116

 

49,950

Total current liabilities

   

14,529,068

 

16,264,901

 

             

Non current liabilities

         

     Operating lease liabilities, non-current portion

   

-

 

59,744

Total non current liabilities

   

-

 

59,744

Total liabilities

   

14,529,068

 

16,324,645

               

Commitments and contingencies

       
               
               

Stockholders' equity

         
 

Capital stock

 

332,573

 

332,573

 

Preferred stock, Series A

 

7,959

 

7,959

 

Preferred stock, Series B

 

160

 

160

 

Treasury stock

 

(5,885,727)

 

(8,390,225)

 

Additional paid-in capital

 

270,242,635

 

271,101,445

 

Retained earnings

   

97,607,873

 

113,827,231

Total stockholders' equity

 

 

362,305,473

 

376,879,143

Total liabilities and stockholders' equity

376,834,541

 

393,203,788


Imperial Petroleum Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars

             

For The Three Months Ended March 31,

 
         

 

 

2023

 

2024

 
               

Cash flows from operating activities

             
 

Net income for the period

       

35,724,102

 

16,654,604

 
                     

Adjustments to reconcile net income to net cash

           

  provided by operating activities:

             
 

Depreciation

       

4,088,852

 

4,027,061

 
 

Amortization of deferred finance charges

   

134,427

 

-

 
 

Non-cash lease expense

   

16,316

 

17,550

 
 

Share based compensation

     

301,541

 

858,810

 
 

Unrealized foreign exchange loss on time deposits

     

-

 

799,150

 
 

Dividend income from related party

     

-

 

(189,583)

 
                     

Changes in operating assets and liabilities:

           

 

(Increase)/decrease in

               
 

Trade and other receivables

     

(7,689,495)

 

(3,249,129)

 
 

Other current assets

       

(487,804)

 

(532,029)

 
 

Inventories

       

(2,435,614)

 

(574,256)

 
 

Changes in operating lease liabilities

     

(16,316)

 

(17,550)

 
 

Advances and prepayments

     

19,540

 

(45,536)

 
 

Due from related parties

     

-

 

(879,732)

 
 

Increase/(decrease) in

               
 

Trade accounts payable

     

476,307

 

(1,100,028)

 
 

Due to related parties

     

633,383

 

2,839,227

 
 

Accrued liabilities

       

605,944

 

903,784

 
 

Deferred income

       

(406,022)

 

(869,166)

 

Net cash provided by operating activities

   

30,965,161

 

18,643,177

 
                     

Cash flows from investing activities

             
 

Dividend income received

     

-

 

191,667

 
 

Acquisition and improvement of vessels

   

(25,923,656)

 

(72,257,190)

 
 

Purchase of bank time deposits

     

(18,536,290)

 

(31,695,420)

 
 

Maturity of bank time deposits

     

68,000,000

 

31,368,080

 

Net cash provided by/(used in) investing activities

     

23,540,054

 

(72,392,863)

 
                     

Cash flows from financing activities

             
 

Proceeds from equity offering

     

12,095,255

 

-

 
 

Stock issuance costs

       

(120,954)

 

-

 
 

Stock repurchase

     

-

 

(2,504,498)

 
 

Dividends paid on preferred shares

     

(435,246)

 

(341,947)

 
 

Loan repayments

       

(24,576,000)

 

-

 

Net cash used in financing activities

 

(13,036,945)

 

(2,846,445)

 
                     

Net increase/(decrease) in cash, cash equivalents and restricted cash

 

41,468,270

 

(56,596,131)

 

Cash, cash equivalents and restricted cash at beginning of period

   

57,506,919

 

91,927,512

 

Cash, cash equivalents and restricted cash at end of period

   

98,975,189

 

35,331,381

 

Cash breakdown

           
 

Cash and cash equivalents

     

95,519,418

 

35,331,381

 
 

Restricted cash, current

     

2,855,771

 

-

 
 

Restricted cash, non current

     

600,000

 

-

 

Total cash, cash equivalents and restricted cash shown in the statements of cash flows

98,975,189

 

35,331,381

 

Supplemental Cash Flow Information:

           

Non cash investing activity – Vessel improvements included in liabilities

-

 

655,333

 

Non cash investing activity – Dividend income from related party included in Investment in related party

-

 

160,416

 

Non cash financing activity – Dividend on preferred series A included in payable to related parties

-

 

93,299